There is no doubt the venture capital is a way to intervene in the economy of a very proper, the foster to some extent the growth in various fields of the market. The venture capital mainly applies to those companies that are emerging and in need of a momentum that will enable them to solidify in the market and thus able to conduct their activities of a better way. You can also give the intervention of venture capital in relation to those companies that do not have a history that can rely on the results that can be obtained with this, so both in the case of new companies such as in which do not have a history to certify their results, the capital to invest runs some risk since there is no guarantee that the investment generated the fruits minimum expected, as it may be that generates much more, so this capital does not have nothing true.

The conditions of this type of investment, has as a result that investors who venture to this mode of investing money in the funds of venture capital seeking companies that can grow with great ease, thanks to that are models of work innovative, working on the grounds of new fields or applying new techniques of action; therefore the system of the firms to be intercepted by the risk capital should foster a good performance, which allow since the initial moment, is of an optimal functioning.

At the time in which a company is intervened by a fund of venture capital, this happens to other owners of a partial manner or submits the form of participation by shareholders. So the funds for investment capital represented or operated by a financial institution, which came to be part of the company remains owner of a certain part, but this is temporarily, because spend some time the company be constituted as it was before the relationship with the fund of venture capital.

The main objective is that with the intervention of venture capital company can grow in large measure and very quick, increasing its value and at the time in which matures investment, to withdraw the agent investor getting some gains on the grounds of the growth of capital.

The funds of venture capital are mandated to manage the money they are loaned by the joins, investors, corporations, governments, and others. The managers of these funds seek to identify the better opportunities, especially given the risk tolerance and expected return.

Unlike what often happens with private investors, these managers can’t depend on only their instinct alone. They must demonstrate to providers the rigor of their recommendations based on very specific criteria such as debt ratios, return on asset, the gross margins, market share, etc..

For the cost analysis and management of these funds generate costs, returns on investment must be high enough to deal, in addition to meeting the expectations of providers. Since risk is an important, fund managers are less believable to invest at the most risky to the life of the company, either in its creation.

Generally, you show your project when the stage is completed, or when sales growth and demonstrate that the prospects of high benefits in the short or medium term will be realistic. These funds can also have differentiations or geographic sector. The investment contracts had better ideally be all the way and cover all sites.

The private investor will going to simplify these processes so that companies of venture capital will often call for legal consultants. Formerly the transaction is completed, the two types of investors seek to “protect” their investment and have a form of supervising. The private sector generally agrees very closely and often takes part in the management of the company that didn’t have time to do the fund managers. However, they sit on boards of directors of the company and demand progress reports.

In the first illustrate, we analyzing the relationship between the business lifecycle and the several instruments that build venture capital industry, then presents a brief history and identifies the instruments that manufacture the industry and the results reached, and at last, it concludes with a brief reflection on the lessons that we leave the development of this industry in the the country and further exploitation.